The BBC's Michael Peschardt: "A fire in the engine room swept out of control"

The Sun Vista caught fire at about 7.15pm (1115 GMT) on Thursday and sank some eight hours later about 90km (60 miles) south of Penang Island, in the Andaman Sea.

"All passengers and crew have been saved without any casualties," said a spokesman for Singapore-based Sembawang Shipmanagement Private Ltd.

Holidaymakers from at least 20 countries were on board, including the United States, Australia, Germany, Belgium, France, India, Indonesia, Japan, Mexico, Russia, Spain and Switzerland.

Favourable conditions

The BBC's Frances Harrison: "The liner now lies 60m below the sea"

Maritime rescue officials say there was no loss of life because there was plenty of time for the crew and passengers to abandon the ship and the weather was good.

(Click here for a map showing where the accident occured)

The liner, described as a top class floating hotel, was returning to Singapore after a six-day cruise to Malacca, Penang and Phuket when the accident happened.

According to the marine police, a fire broke out in the engine room which quickly burned out of control.

Shocked survivors were taken to the Malaysian island of Penang

Survivors said they were having tea when there was a power cut and the captain then ordered them to abandon ship.

In a state of confusion and panic, they scrambled overboard into lifeboats and then waited about an hour for passing merchant ships and police vessels to pick them up.

At least 10 people taken to hospital, most of them elderly or suffering from shock.

Briton Thomas Bonnard, 62, described conditions during the evacuation, saying: "The captain did not tell us about the fire. All the crew members looked panicky."

Nightmare situation

At least 10 passengers received hospital treatment

Ram Yalamanchi, 32, from India, said: "It was a true nightmare, I thought we all were going to die. We were on one of the last lifeboats, we watched her just slip under the water.

"People were screaming, praying, it was awful, the most terrifying experience of my life."

The passengers and crew abandoned ship in 18 lifeboats and four liferafts. The last of them were rescued after about two hours in the water.

Lisa Holland reports: "Passengers had to spend several hours in lifeboats"

Fourteen ships, including government and merchant craft, took part in the massive rescue operation.

The passengers, many of whom lost all their belongings in the sinking, are being looked after at three different hotels on the island of Penang.

A spokesman for the marine police in Penang said the cause of the fire was not known.

The Sun Vista now lies 60m under the sea in the Straits of Malacca - one of the world's busiest shipping routes.

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